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Has the Euro Boosted Intra-Euro Area Exports? Evidence from Industry Data

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  • Gavin Murphy
  • Iulia Siedschlaga

Abstract

We estimate the euro effect on export patterns using a panel of industry data from Ireland over the period 1993-2004. Our main innovation is to account for country and industry specific omitted trending variables bias. We find that the euro effect on Irish exports to the euro area countries relative to the rest of the trading partners of Ireland has been positive, significant and increasing since 2000. Furthermore, we find heterogeneous euro effects across industries. We find consistent significant positive euro effects for industries characterised by increasing returns to scale.

Suggested Citation

  • Gavin Murphy & Iulia Siedschlaga, 2011. "Has the Euro Boosted Intra-Euro Area Exports? Evidence from Industry Data," Review of Economics and Institutions, Università di Perugia, vol. 2(3).
    • Handle: RePEc:pia:review:v:2:y:2011:i:3:n:4
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    More about this item

    Keywords

    European Economic and Monetary Union; Gravity Models; Time and Industry Heterogeneity; Omitted Trending Variables Bias;
    All these keywords.

    JEL classification:

    • F33 - International Economics - - International Finance - - - International Monetary Arrangements and Institutions
    • F36 - International Economics - - International Finance - - - Financial Aspects of Economic Integration
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics

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